When Is Earnest Money Due? Sooner Than You Might Expect

• Earnest money is typically due 1–3 business days after offer acceptance.
• Deposit deadlines are binding under “time is of the essence” clauses.
• Funds should always be paid to a neutral third party (escrow, title, attorney).
• Missing the deadline can allow the seller to cancel the contract.

After your offer is accepted, your first real financial investment in the homebuying process is often the earnest money deposit. 

“Earnest money is a good faith deposit that you pay soon after a seller has accepted your offer on a home,” explains Courtney King, Senior Manager of designated brokers at Redfin. “It really demonstrates your intent to buy the home and shows the seller that you’re committed to the purchase. It can also act as a safeguard just in case you breach the contract; then the seller might have an opportunity to retain that earnest money.”

Earnest money differs from the down payment and other closing costs in that it’s paid earlier, usually due within 1-3 business days after the seller signs the purchase agreement. 

To really show sellers you’re serious, signing the contract with earnest money in hand is most efficient. But, as it goes with real estate transactions, there’s a bit more to the process.

In this article:
When do you pay earnest money?
How is earnest money paid and who gets it?
What happens if earnest money isn’t paid on time?
Tips for meeting your earnest money due date
FAQs

At what point do you pay earnest money?

Earnest money is due shortly after your offer is accepted, and the standard payment timeline is 1-3 business days. The exact deadline will be laid out in your contract, and it’s important to be clear on the terms—do days refer to business days or calendar days? Is there a cut-off time on the final day for the payment?

Usually, the timeline for paying earnest money is as follows:

1. Offer accepted (day 0): The contract clock starts.
2. Earnest money is due (1-3 business days): The buyer delivers the deposit, ideally to a neutral third party like an escrow agent. 
3. Escrow deposit confirmed (1-2 business days): The funds are verified, and the inspection and contingency period begins.

Contract wording is important: If the purchase agreement says “within three business days of acceptance,” weekends and holidays usually don’t count. But always double-check how your state or brokerage defines business days. Once the deposit is received and confirmed, your transaction officially moves forward into inspections, appraisal, and financing. 

In some areas, like North Carolina, South Carolina, or Texas, you will pay a nonrefundable due diligence fee or option fee instead of or in addition to the earnest money deposit; be sure to check with your agent to understand the regulations for your location.

How is earnest money paid and who gets it?

In addition to when the earnest money is due, your contract will also specify where to send your earnest money and how to pay it. In most cases, you’ll deliver the deposit to a neutral third party like a title company, escrow agent, or an attorney, which, says King, is the most effective way of protecting your earnest money as there’s no inherent conflict of interest.

How to pay earnest money

A wire transfer is the most common and secure method of depositing funds into an escrow account, where the money is safely held until closing. A cashier’s check or certified check might be accepted if it is delivered in person to the third party fund holder.

Never pay earnest money directly to the seller. This protects both parties from fraud, misdirected payments, and legal disputes if the money needs to be returned.

Always verify payment instructions directly with your agent or escrow officer before sending funds. Wire fraud targeting real estate transactions is a real risk, so double-check details by phone using a verified number or in person before transferring money.

Who gets the earnest money deposit?

The escrow holder (listed in your contract) is responsible for managing the earnest money deposit. They’ll confirm they received the funds, provide appropriate documentation, and hold the money until one of two things happens:

1. You close on the home: The earnest money deposit is applied toward your down payment or closing costs.
2. The contract is terminated: The money is released based on the terms of your purchase agreement—typically refunded to the buyer if you cancel under a contingency, or kept by the seller if you breach the contract terms.

What happens if earnest money isn’t paid on time?

Most real estate contracts include a “time is of the essence” clause, which means that deadlines are binding.

“Once you’ve signed, you have a duty to fulfill your obligations as a buyer,” King says. “Making sure you hit those deadlines is crucial.” And it should be clear what those deadlines are, because if you miss the earnest money payment window, a few things could happen.

• Most notably, the seller can cancel the contract: In most transactions, the agreement isn’t fully in effect until the earnest money is paid. If you miss the deadline, the seller can move on to the next buyer without penalty. 
• You could lose credibility as a buyer: Even if the seller doesn’t cancel the contract, missing the payment deadline could be seen as being unreliable as a buyer, putting unnecessary strain on the transaction and potentially affecting negotiations later.
• The home purchase might be delayed: Without the earnest money deposit, the escrow process can’t officially begin—which might stall inspections, appraisals, or other deadlines that are tied to that starting date.

Bottom line: Don’t miss your earnest money due date

Missing your earnest money due date, even by accident, can have serious consequences. To keep your homebuying journey on track, make sure you start strong by:

• Having funds ready early. Before you even make an offer, make sure your earnest money amount is accessible (not tied up in an investment account or slow-to-transfer savings).
• Confirming the exact due date before signing. Ask your agent to point out the deposit clause in your contract. It will clarify how many days you have and whether they are business days or calendar days.
• Planning around weekends and holidays. If your deadline lands on a Friday or before a holiday, start the transfer early so your escrow holder receives it in time.
• Knowing who to pay. The escrow or title company is the safest place to send funds. Never wire money until you’ve verified instructions directly with your agent or escrow officer.
• Getting written confirmation. Always request proof that your earnest money was received and deposited. It’ll protect you if questions come up later, and will also act as confirmation to continue the due diligence process.

Meet your deadlines, verify your details, and your earnest money will do exactly what it’s meant to: move you one step closer to owning your new home.

FAQs: When is earnest money due

Can I pay earnest money at the same time I submit my offer?
Usually, earnest money is paid after your offer is accepted. Never send funds until there’s a signed agreement and verified payment instructions from the escrow holder. In competitive markets, some buyers deposit the money immediately upon acceptance or show proof of funds upfront to strengthen their offer.

What happens if the earnest money deadline falls on a weekend or holiday?
Most contracts use business days, so weekends and holidays don’t count toward your deadline. For example, if your contract says “within three business days” and your offer is accepted on a Thursday, your earnest money would be due by Tuesday (assuming no holidays in between). Always check your agreement—it defines how “days” are counted in your transaction.

Is earnest money paid before or after the inspection?
Earnest money is typically paid before the inspection period begins. Once the deposit is received, your inspection and contingency timelines officially start. Earnest money deposits tend to “activate” the rest of the homebuying process—deposit first, then inspections, appraisal, and closing.

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